Wendy's 2009 Annual Report Download - page 72

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accounts which are all investments with a maturity of three months or less when acquired and are designed to
maintain a stable value.
As of January 3, 2010, we had amounts of both fixed-rate debt and variable-rate debt. On the fixed-rate
debt, the interest rate risk presented with respect to our long-term debt, excluding capitalized lease and sale-
leaseback obligations, primarily relates to the potential impact a decrease in interest rates of one percentage
point has on the fair value of our $1,056.3 million of fixed-rate debt and not on our financial position or our
results of operations. However, as discussed above under “Interest Rate Risk,” we have interest rate swap
agreements on a portion of our fixed-rate debt. The interest rate risk of our fixed-rate debt presented in the
tables above exclude the effect of the $361.0 million for which we designated interest rate swap agreements as
fair value hedges for the terms of the swap agreements. As interest rates decrease, the fair market values of the
interest rate swap agreements increase. The interest rate risks presented with respect to the interest rate swap
agreements represent the potential impact the indicated change has on our results of operations. On the
variable-rate debt, the interest rate risk presented with respect to our long-term debt, excluding capitalized
lease and sale-leaseback obligations, represents the potential impact an increase in interest rates of one
percentage point has on our results of operations related to our $251.5 million of variable-rate long-term debt
outstanding as of January 3, 2010. Our variable-rate long-term debt outstanding as of January 3, 2010 had a
weighted average remaining maturity of approximately two years.
65